Wall Street Hovers Near All-Time Highs With Solid Performances From Top-Tier Companies

Economic

Summary:

U.S. markets were steady early Thursday, holding near record highs as investors digested corporate earnings from major firms. PepsiCo and Delta Air Lines both beat Wall Street forecasts, with Delta’s upbeat outlook lifting airline stocks

U.S. markets are little changed early Thursday morning but continue to hover near all-time highs as a couple of high-profile companies report quarterly earnings.

Futures for S&P 500, Nasdaq and the Dow Jones Industrial Average are virtually unchanged before the opening bell. The S&P and Nasdaq both closed at record highs Wednesday.

PepsiCo shares inched up less than 1% after the snack and beverage giant reported better-than-expected revenue in the third quarter despite weaker demand for its snacks and drinks in North America. PepsiCo’s net income fell 11% to $2.6 billion, but adjusted for one-time items the company earned $2.29 per share, beating analysts’ forecasts by 3 cents.

Delta Air Lines easily topped Wall Street expectations for third quarter profit. Delta expects recent momentum to carry through the end of the year and forecast full-year profit of $6 per share, in the upper half of its previous guidance range. Delta shares rose 5.8% in premarket, lifting other major airlines’ shares along with it. United rose 3.9% and American jumped 4.9%.

Danish pharmaceutical company Novo Nordisk, the maker of weight-loss drug Wegovy, announced that it was acquiring San Francisco’s Akero Therapeutics for $4.7 billion in cash. Shares of Akero, a clinical-stage drug developer, jumped 18% before markets opened.

Trading has been relatively muted recently following the U.S. government’s latest shutdown. The closure is delaying the release of several major economic reports that usually move the market. Stocks have been drifting without them or other signals to change expectations for cuts to interest rates by the Federal Reserve, one of the major reasons the stock market has been on a tear since April.

Oil prices fell after Israel and Hamas agreed Wednesday to pause fighting in Gaza so that the remaining hostages there can be freed in the coming days in exchange for Palestinian prisoners.

The acceptance of elements of a plan put forward by the Trump administration represents the biggest breakthrough in months in the devastating two-year-old war and reduced risks in the volatile region.

U.S. benchmark crude dipped 21 cents to $62.34 per barrel. Brent crude, the international standard, edged down 18 cents to $66.07 per barrel.

Gold shed some of its stellar gains but was still at $4,054.50 per ounce as of Thursday morning in the U.S.

Elsewhere, European shares were mixed at midday while most Asian stocks rose.

Germany’s DAX added 0.6% while France’s CAC 40 gained 0.4%. Britain’s FTSE 100 fell 0.2% as sentiments were weighed by banking and housing stocks.

Japan’s Nikkei 225 rose 1.8%, closing at 48,580.44. Technology giant SoftBank Group surged over 11% after it announced a $5.4 billion deal to acquire the robotics unit of Swiss engineering firm ABB.

Hong Kong’s Hang Seng index edged down 0.3% to 26,740.37, while the Shanghai Composite index added 1.3% to 3,933.97 in its first trading session since Oct. 1.

Australia’s S&P/ASX 200 edged up nearly 0.3% to 8,969.80 while Taiwan’s Taiex pared earlier bigger gains, closing 0.9% higher.

Source: AP

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Adam

Economic

Federal Reserve Bank of New York President John Williams supports more interest rate cuts this year in view of the risk of a further slowdown in the labor market, he said in an interview published by the New York Times on Thursday.

"My own view is that yes, we would have lower rates this year, but we’ll have to see exactly what that means," Williams told the newspaper.

"The risk that inflation got well above 2% and we didn't bring it back down would be very damaging to the economy and to our credibility. But we need to do it in a way that does our best to minimize the risk of the labor market cooling more sharply," he told the newspaper.

Williams serves as the vice chair and a permanent voting member of the rate-setting Federal Open Market Committee.

The Fed cut its rate by a quarter percentage point at its September meeting, a move Fed Chair Jerome Powell and others characterized as a way to leave policy tight enough to still restrain the economy and put downward pressure on inflation, while also providing a looser outlook that could help ensure against rapid weakening of the job market.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Adam

Economic

U.S. stock futures hover around the flatline, with markets gauging ongoing euphoria around artificial intelligence and minutes from the Federal Reserve’s latest meeting. The Federal Reserve remained divided over the trajectory of interest rates over the rest of 2025, as officials assessed the twin pressures of cooling employment and stubbornly elevated inflation. Elsewhere, Delta and PepsiCo are due to unveil quarterly results, while gold pulls back after a record-setting run higher.

Futures subdued

U.S. stock futures searched for direction on Thursday, as investors poured through minutes from the Fed’s most recent meeting and assessed an artificial intelligence-driven rally in tech shares in the prior session.

By 03:12 ET (07:12 GMT), the Dow futures contract and S&P 500 futures were both mostly unchanged, while Nasdaq 100 futures inched up by 16 points, or 0.1%. The benchmark S&P 500 and tech-heavy Nasdaq gained on Wednesday, logging new all-time closing peaks, boosted in large part by AI-fueled mega-cap companies which have driven much of the equity market’s advances this year.

Despite worries around the perceived circular nature of many recent AI-related deals, enthusiasm around the nascent technology has shown few signs of abating. Little progress has also appeared in breaking a prolonged stalemate in Washington that caused a now more than week old shutdown of the federal government -- possibly threatening to delay the release of more economic data in the days ahead.

Given the enduring AI boom and dearth of fresh gauges of the U.S. economy, traders are not expected to have much to work with prior to the start of the third-quarter earnings season next week, analysts have flagged.

FOMC minutes

Markets did have the opportunity to parse through minutes from the Federal Open Market Committee’s September meeting, when the central bank opted to slash interest rates by 25 basis points and suggested that more reductions could be coming by the end of the year.

The minutes indicated that the committee was divided over the path of rates, with much of the debate centering around a slowing labor market and sticky inflationary pressures. Theoretically, a rate cut helps to spur on investment and hiring, albeit at the risk of reigniting price growth.

Most officials "judged that it likely would be appropriate to ease policy further over the remainder" of 2025, although the exact timing and scope of the cuts remained a source of uncertainty, the minutes showed.

In a note, analysts at Capital Economics said the minutes confirmed that most FOMC participants backed bringing down rates to a more "neutral setting," or a level that neither aids nor hinders the wider economy, due to persistent "downside risks" to the employment picture.

"Nonetheless, with ’a majority of participants’ still emphasising the ’upside risks to their outlooks for inflation,’ we remain comfortable with our view that the FOMC will proceed at a slower pace than market pricing suggests," the analysts said.

Following the publication of the minutes, bets that the Fed will slash rates by a further 25 basis points at its upcoming meeting this month were intact.

Delta to report

While the quarterly corporate reporting period is due to begin in earnest next week, investors will still be keeping tabs on numbers from Delta Air Lines on Thursday.

The numbers, due out before the opening bell, are set to be unveiled just weeks after the carrier reaffirmed its full-year and current-quarter financial guidance.

Delta also lifted the lower end of its revenue outlook for the third quarter through September, saying it now anticipates a top-line uptick of 2% to 4%, compared to a prior forecast of 0% to 4%.

It was a sign of what has become a much more upbeat outlook for the U.S. travel industry after a bout of turmoil and gloom earlier this year following the announcement of Trump’s aggressive import tariffs.

Many travelers moved to take advantage of deep discounts or deals to set out on summer vacations, while industry executives have highlighted confidence that resilience in the travel sector could give airlines room to raise airfares in the final months of 2025.

PepsiCo earnings ahead

PepsiCo is also scheduled to report before the market opens, as analysts weigh suggestions for carving up the packaged food giant from activist investor Elliott Investment Management.

Elliott, which announced a $4 billion stake in the company in September, has suggested that Pepsi ditch brands like Quaker and even spin off its bottling network in a bid to slash costs and bolster margins.

The hedge fund has added that these changes could allow Pepsi to focus its operations on new chips and sodas and streamline its operations. Elliott and Pepsi are engaged in conversations about the proposals, according to media reports, although other investors have noted worries that the separation of the bottling business in particular could take years and dent margins and earnings.

Shares in the maker of popular items such as Mountain Dew soda and Lay’s potato chips have slumped by more than 7% so far this year, trailing the broader S&P consumer staples index.

"[S]entiment has improved somewhat with the presence of Elliott and the expectation of some type of strategic action to bolster shareholder value, but the whole staples space is facing cyclical and secular headwinds and management is likely to pushback against some of the more radical proposals, like spinning off bottling," analysts at Vital Knowledge said in a note.

Gold retreats after record run

Gold prices fell slightly as a ceasefire between Hamas and Israel curbed some safe-haven demand, although the yellow metal still remained close to recent record highs.

Bullion, which has been on a torrid run that has seen its price rip above $4,000 per ounce for the first time, remained underpinned by concerns over Japanese fiscal health, the ongoing U.S. government shutdown, and a political crisis in France.

Dovish-sounding comments from the Fed minutes also kept markets largely optimistic over more rate cuts, further supporting gold.

Spot gold fell 0.2% to $4,032.10 an ounce, while gold futures for December fell 0.5% to $4,050.50/oz by 03:48 ET.

Source: investing

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Blue River

Economic

Forex

The chart shows the Dollar Index (DXY) trading above the 99-point level today — its highest since early August. The dollar’s strength is supported by the weakening of other currencies:

→ The yen is weakening amid expectations of looser monetary policy. Conservative Sanae Takaichi could become the first female prime minister in Japan’s history, pursuing substantial spending and economic stimulus.

→ The euro remains under pressure amid France’s political crisis. Following the resignation of Prime Minister Sébastien Lecornu’s government, President Emmanuel Macron stated he plans to appoint a new prime minister this week.

Will the Dollar Index continue to rise?

Technical Analysis of the DXY Chart

On 19 September, we provided a significant analysis of the DXY chart in which we:

→ Confirmed the relevance of a descending channel (shown in red), which includes intermediate QL and QH lines dividing the channel into quarters.

→ Highlighted a reversal upward from the QL line (shown with an arrow).

→ Suggested a bullish scenario aiming to reach the QH line.

This scenario has indeed unfolded:

→ On 25 September and 6 October (as shown by arrows), the QH line acted as resistance.

→ On 7 October, it was broken upward, underlining bulls’ strength.

Given this, it is reasonable to suggest that bulls remain in control, while:

→ DXY fluctuations since mid-September’s low are forming an upward channel;

→ its upper boundary may act as resistance, potentially triggering a pullback towards the Support line;

→ the upper boundary of the red channel appears to be a key target for the current rally that began last month.

Source: ACTIONFOREX

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Samantha Luan

Economic

Commodity

Forex

Political

President Ferdinand Marcos Jr on Wednesday signed eight licenses for oil and natural gas and hydrogen exploration across the Philippines, as the Southeast Asian country braces for depletion at its only producing gas field."This landmark unveiling marks the largest batch of PSCs [Petroleum Service Contracts] awarded in a single period in Philippine history, reaffirming the administration's strong resolve to accelerate domestic energy exploration and production", the country's Department of Energy (DOE) said in a statement on its website.

"The new contracts also include the world's first competitive bid round for native hydrogen, alongside co-managed petroleum projects with the Bangsamoro Autonomous Region in Muslim Mindanao".PSCs 80 and 81 allow Australia's Triangle Energy (Global) Ltd, the United Kingdom's Sunda Energy PLC and the Philippines' PXP Energy Corp and The Philodrill Corp "to revitalize petroleum exploration in the southern Sulu Sea", the DOE said. PSC 80 covers about 780,000 hectares while PSC 81 spans around 532,000 hectares.

Triangle Energy also bagged another license for the Cagayan basin. PSC 82 has 480,000 hectares.United States-based Koloma Inc won SCs 83 and 84 for native hydrogen exploration in Central Luzon. SCs 83 and 84 cover more than 126,600 hectares and over 85,000 hectares respectively.PSC 85 went to Singapore's Gas 2 Grid Pte Ltd for nearly 127,500 hectares onshore Cebu province.

PSC 86 in the Northwest Palawan Basin went to a Philippine consortium: Philodrill, Anglo Philippine Holdings Corp, PXP Energy Corp and Forum Energy Philippines Corp. The license covers 132,000 hectares.Israel's Ratio Petroleum Ltd won its second Philippine PSC. SC 87, like its earlier PSC 78, targets the East Palawan Basin. Under the previous license, the company "successfully conducted a 3D seismic survey last year as part of its ongoing exploration activities", the DOE said.

"Service contractors may now commence their respective work programs, which will include geological and geophysical studies, seismic surveys and drilling activities as appropriate", the DOE said."These eight PSCs signal the reinvigorated investor confidence in the Philippine upstream energy sector, paving the way for new gas exploration initiatives amid the decline of the Malampaya Gas Field", it said.

"Collectively, the contracts represent a potential investment commitment of around $207 million over a seven-year exploration period".Energy Secretary Sharon S. Garin said in the statement, "These service contracts signify not only our determination to secure new energy sources, but also our readiness to embrace innovation and sustainability while reducing import dependence. From conventional petroleum to native hydrogen, we are expanding the frontiers of Philippine energy exploration".

According to the DOE's latest power statistics report, published June 15, coal remained the biggest contributor to the archipelago’s generation in 2024 at nearly 80,000 gigawatt hours (gWh). Coal was followed by renewables at over 28,000 gWh. Gas accounted for over 18,000 gWh, while over 1,300 gWh came from oil.

Source: Rigzone

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Adam

Stocks

Latest news on the Israeli-Palestinian conflict

OPENING CALL

Stocks futures were struggling for direction early Thursday after the AI rally reignited in the previous session.

Global instability has weighed on markets but a significant move toward peace in the Middle East helped damp some of those fears, with oil fluctuating on the news that a hostage release deal has been agreed between Israel and Hamas.

Closer to home, an endgame is taking shape as the government shutdown stretches into a ninth day , though it could take a while longer to reach a deal.

Government-issued economic data is likely to be postponed, but investors will be watching for a raft of speakers at a community-bank conference at Washington with Federal Reserve Chair Jerome Powell due to give welcoming remarks at 8:30 a.m. ET.

The Fed's Bowman, Barr, Treasury Secretary Scott Bessent and Blackstone CEO Steve Schwarzman are among other scheduled speakers.

Meanwhile, new research found that immigration restrictions lead to more M&A activity, as companies that can't find needed talent often acquire it via takeovers.

The research found causation as opposed to correlation, and history suggests the response was fairly quick.

Stocks to Watch

Costco rose 1.5% off-hours after it said sales rose 8% on the year in the five weeks ending on Oct. 5.

MP Materials rallied premarket trading after China tightened rare-earth export controls.

Richardson Electronics climbed 20% after hours. Its profit soared, driven by higher demand for its semiconductor wafer fabs.

Telomir Pharmaceuticals said its Telomir-1 compound showed it can kill aggressive triple-negative breast cancer cells. Shares gained 21% after market close.

TEVA, Sandoz and Viatris: Shares in the drug companies were mixed premarket, after The Wall Street Journal reported that generic medicines would be excluded from planned pharmaceutical tariffs.

Watch For:

Weekly Jobless Claims were due along with Wholesale Inventories for August; World Agricultural Supply & Demand Estimates (WASDE); Earnings from PepsiCo, Delta Air Lines, Levi Strauss

Must Reads:

-How Trump Threw a Wrench Into Credit Markets

- Five Things to Know About the Gaza Deal

-Drug Rehabs Lure In Patients for Insurance Money-Then Leave Them on the Street

MARKET WRAPS

Forex:

The dollar rose after the Fed minutes showed officials were divided over how much further they should lower interest rates.

Most policymakers thought it would be appropriate to cut rates over the remainder of the year but a few thought a cut wasn't necessary at last month's meeting.

There was clearly a level of caution throughout the meeting as participants thought recent indicators didn't show a sharp deterioration in labor market conditions, Deutsche Bank said.

"On inflation, the majority of members emphasised upside risks."

News that French President Emmanuel Macron could announce a new prime minister could support the euro, ING said.

"This has come as a surprise to a market that had felt that the next chapter in the French political saga could only be new and divisive elections."

Sterling fell to a nearly two-week low against the dollar after the Fed minutes.

"This aligns with our recent view that the pound's near term fortunes are largely determined by dollar dynamics and global risk appetite rather than U.K. fundamentals," Monex Europe said.

The yen could fall further as expectations that interest rates will stay lower for longer encourage investors to use it as a funding currency in carry trades, ING said.

Bonds:

Treasurys were little changed, awaiting fresh impulse as the government shutdown continued.

Energy:

Oil prices were little changed, as investors turned their focus to the deal in Gaza.

Metals:

Gold prices fell, but continued to trade above the historic $4,000 mark as the first phase of a Gaza deal started.

"Concerns over the U.S. economy and the government shutdown continue to boost investor demand," ANZ said.

Strong ETF inflows and expectations that the Fed will cut rates further this year were also supporting prices, with major Wall Street banks saying the yellow metal has room to climb even higher.

Swissquote Bank said gold has more room to run, adding that even with record prices, the medium-term outlook for bullion remained positive.

Many investors already eye a move toward $5,000 and above, it said.

Copper

Copper prices climbed after Canadian giant Teck Resources cut its production guidance due to continued challenges at its mine in Chile, raising concerns over global supply.

"Copper has surged around 23% so far this year, driven by supply disruptions at major mines that outweigh weak demand in major industrial economies," ING said.

The International Copper Study Group forecast a supply deficit of 150,000 tons next year, rather than its previous estimate of a 209,000-ton surplus.

The group also narrowed its 2025 surplus estimate to 178,000 tons from 289,000 tons earlier.

TODAY'S TOP HEADLINES

Google Plans $5.8 Billion Investment in Belgium

Alphabet's Google will pump 5 billion euros ($5.82 billion) of capital into Belgium over the next two years, the latest large-scale investment from a U.S. tech giant bolstering its data center infrastructure in Europe.

Google said late Wednesday that it would scale up its data center facility in St. Ghislain, adding 300 full-time jobs to its existing workforce of around 600 full-time and contract jobs. Funding will underpin the use of artificial-intelligence and augment Google's ability to meet rising demand for Google Cloud, it said. The investment will also help power other services, like Google Search, Maps and Workspace.

Can Ferrari Persuade the Superrich to Buy an EV Sports Car That Won't Rev?

Extravagantly powerful and noisy engines helped make Ferrari the ultimate sports-car brand. Now the company wants to persuade the superrich to buy a model with no engine at all.

The Italian carmaker this week started lifting the hood on its first fully electric vehicle, a yearslong project that has cost the brand hundreds of millions of dollars and promises to set a benchmark for how battery-powered sports cars should look, sound and drive.

At a glitzy launch event at its headquarters in Maranello, Ferrari showed off the technology that will power the EV, including a new electric axle, motor and battery pack set to be made in-house at its new factory.

Daimler Truck to Sell Japanese Plant as Part of Toyota Truck Units Merger

Daimler Truck said it intends to sell its Nakatsu plant in Japan after consolidating its Mitsubishi Fuso operations at the Kawasaki plant, as part of the Japanese truck-unit merger with Toyota Motors.

Daimler and Toyota said Thursday that they would consolidate their manufacturing footprint into three sites from five by the end of 2028, in a bid to achieve efficiencies.

Gold Screams 'Debasement Trade.' Bonds Say Otherwise.

Debasement fears seem to be everywhere-except the one place they should be most obvious: bonds. Sure, there was a nudge up in global long-end yields this week, thanks to politics. Japan's ruling party picked a leader who likes big spending and low rates, and France lost yet another prime minister after failing to reconcile the need to save money with a parliament that disagrees.

Yet, the bond markets remain confident that U.S. inflation won't run out of control, even as investors point to soaring gold prices as a sign of fear that politicians and central banks will choose inflation as the easy way out of debt problems.

German Exports Unexpectedly Fell in August as Uncertainty Weighed

German exports unexpectedly declined in August, hampered by weaker trade with other European nations and the uncertainty prompted by U.S. tariffs over the summer.

Exports of goods fell 0.5% on month in August, while imports fell 1.3%, German statistics agency Destatis said Thursday. Economists polled by The Wall Street Journal instead expected exports to rise by 0.3%.

What's Really Going On in Portland, According to Police Reports

On Sept. 5, President Trump described ongoing protests in Portland as "unbelievable" and "the destruction of the city."

Later that day, a sergeant from the Portland Police Bureau filed his daily observations of the demonstrations outside an ICE facility.

Russian Drones Turn the Streets of Kherson Into a Civilian Kill Zone

MYKOLAIV, Ukraine-Yaroslav Pavlivskiy waved his hands as he sprang from his car, pleading for mercy with the operator of a Russian drone circling overhead as he drove home from a market in the southern city of Kherson.

The operator flicked a switch to release a grenade, which exploded and tore into the legs of the 69-year-old pensioner. A passerby used a belt as a tourniquet to stop him from losing too much blood, saving his life.

Republicans Caution White House on Inflicting Shutdown Pain

WASHINGTON-Senate Majority Leader John Thune and other senior GOP lawmakers have quietly advised the White House not to move forward with mass layoffs and sharp cuts to government assistance programs as the shutdown enters its second week, according to people familiar with the matter.

In recent conversations, Thune (R., S.D.) has counseled the president to attempt to limit the fallout from the shutdown for as long as possible, according to one of the people. Far-reaching government cuts and firings could backfire with the public, lawmakers have told the president's aides, warning that such moves could cause voters to blame Republicans for the shutdown, the people said.

Source: morningstar

Risk Warnings and Disclaimers

Add to Favorites

Michelle

Economic

Forex

Five months after taking office with pledges to stop the rot in Germany, Chancellor Friedrich Merz might have hoped for more encouraging news.

But the past three days of data releases for August have underscored just how torrid a situation manufacturing faces in Europe’s biggest economy. Factory orders unexpectedly fell for a fourth month, production plunged the most in well over three years, and exports to the US dropped to the lowest since late 2021.

The index for industry is now markedly lower than its peak reached in 2017, and sits at readings that were first surpassed all the way back in 2005. Even if the change in value-added is less dramatic, the damage to growth is undeniable.

It’s little surprise that the once-vaunted auto industry is the biggest source of pain. Not only have carmakers been hurt by US President Donald Trump’s tariff increases, but they’ve seen the previously lucrative China market steadily slip from their grasp — having been slow to pick up on Beijing’s determination to transition to electric vehicles.

Mercedes-Benz on Tuesday reported a 27% contraction in China sales, taking them down to their lowest in almost a decade. While BMW saw a much smaller drop, its guidance about the outlook ahead was worrying enough to push its shares down by the most since last November. On Thursday, Porsche revealed that its own sales in China fell 21% during the third quarter.

In a measure of the alarm in Berlin at the car industry’s woes, Merz’s coalition announced a program worth €3 billion ($3.5 billion) on Thursday offering incentives for low- and middle-income households to buy zero-emission vehicles.

While the ruling parties arrived in office with an historic deal to set aside debt rules and embrace large-scale defense and infrastructure spending, it will take time for that money to reach the economy. On Wednesday, the government raised its forecasts for economic growth this year, but those predictions still show hardly any expansion this year before a recovery finally takes hold in 2026.

“The German economy is still on shaky ground,” said Geraldine Dany-Knedlik, head of forecasting at the Berlin-based DIW institute.

There’s a consensus among economists that fiscal stimulus alone won’t be enough to sustain momentum, and that the government needs to get on with growth-friendly changes. Germany’s central bank chief chimed in again on the matter this week.

“Time to speed up on the path to reform,” Bundesbank President Joachim Nagel urged. “The government must take decisive action.”

But it’s already clear that, beyond the stellar performance of some stocks in Germany’s DAX index, the more optimistic hopes that Merz first stoked with his debt reforms are starting to fade.

“The fiscal reforms have not yet rekindled animal spirits in Germany’s private sector, except in pockets such as defense,” Deutsche Bank economists led by Robin Winkler wrote in a note this week. “In the absence of meaningful structural reforms the government has so far got less” out of its announced stimulus plans than expected, they said.